A $166M loan tied to Tishman Speyer’s 500K SF One Channel Center in Fort Point was transferred to special servicing this month.
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The $166M loan, secured by Tishman Speyer’s 11-story One Channel Center and its adjacent garage, was transferred to special servicing on Aug. 7, according to Morningstar Credit Analytics.
The move follows State Street’s July announcement that it plans to exit the building when its lease expires in 2029 as part of a broader consolidation.
"Given State Street’s decision to leave One Channel as part of a consolidation of its Boston-area workforce, we have elected to proactively engage with the special servicer in advance of the loan’s maturity," a spokesperson for Tishman wrote in a statement to Bisnow. "We remain focused on developing a thoughtful and responsible path forward for the property."
State Street has occupied the property for nearly a decade, housing 1,500 employees and serving as the headquarters for its asset management arm for the past five years, according to The Boston Globe.
The consolidation will relocate staff to State Street’s One Congress headquarters. The company is weighing subleasing or a potential lease buyout to give Tishman time to secure a long-term tenant, the Globe reported.
Morningstar’s David Putro said the loan is still covering debt service, but the looming State Street exit could leave the building empty and complicate refinancing before the loan’s December 2025 maturity.
"Any lender on a refinancing is taking at least a five-year view (if not longer)," Putro wrote in a statement to Bisnow. "So with the prospect of the building being completely empty by 2029, refinancing becomes nearly impossible."
CV Properties and Ares Management developed One Channel Center and its 970-space garage in 2014 for $225M, building it for State Street. Tishman acquired the complex the following year for $316.5M.
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